#THE PROVISIONAL COLLECTION OF TAXES ACT, 1931 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 

1. Short title. 
2. Definition. 
3. Power to make declarations under this Act. 
4. Effect of declarations under this Act, and duration thereof. 
5. Certain refunds to be made when declarations cease to have effect. 
6. [Repealed.]. 



#THE PROVISIONAL COLLECTION OF TAXES ACT, 1931 

##ACT NO. 16 OF 1931
[^1]

[28th September, 1931.] 

An  Act  to  amend  the  law  providing  for  the  immediate  effect  for  a  limited  period  of 
  provisions  in  Bills  relating  to  the  imposition  or  increase  of  duties  of  customs  or 
  excise. 

  WHEREAS it is expedient to amend the law providing for the immediate effect for a limited period of 
provisions  in  Bills  relating  to  the  imposition  or  increase  of  duties  of  customs  or  excise;  It  is  hereby 
enacted as follows:— 

1. **Short title.**—This Act may be called the Provisional Collection of Taxes Act, 1931. 

2. **Definition.**—In this Act, a “declared provision” means a provision in a Bill in respect of which a 
declaration has been made under section 3. 

3. **Power to make declarations under this Act.**—Where  a  Bill  to  be  introduced  in 
Parliament on  behalf  of  Government  provides  for  the  imposition  or  increase  of  a  duty  of 
customs  or  excise,  the  Central  Government  may  cause  to  be  inserted  in   the  Bill  a  declaration 
that  it  is  expedient  in  the  public  interest  that  any  provision  of  the  Bill  relating  to  such 
imposition or increase shall have immediate effect under this Act. 

4. **Effect of declarations under this Act, and duration thereof.**—(1)  A  declared 
provision  shall  have  the  force  of  law  immediately  on  the  expiry  of  the  day  on  which  the  Bill 
containing it is introduced. 

  (2) A  declared  provision  shall  cease  to  have  the  force  of  law  under  the  provisions  of  this 
Act— 

     (a) when it comes into operation as an enactment, with or without amendment, or 

     (b) when the Central Government, in pursuance of a motion passed 
by Parliament, directs, by notification  in  the  Official  Gazette,  that  it  shall  cease  to 
have the force of law, or 

     (c) if  it  has  not  already  ceased  to  have  the  force  of  law  under  clause  (a)  or  clause  (b), 
then on the  expiry  of  the seventy-fifth day after  the  day  on  which  the  Bill  containing  it 
was introduced. 

5. **Certain  refunds  to  be  made  when  declarations  cease  to  have  effect.**—(1)  Where  a 
declared provision comes into operation as an enactment in an amended  form before the expiry 
of the seventy-fifth day after the day on which the Bill containing it was introduced, refunds 
shall  be  made  of  all  duties  collected  which  would  not  have  been  collected  if  the  provision 
adopted in the enactment had been the declared provision: 

  Provided  that  the  rate  at  which  refunds  of  any  duty  may  be  made  under  this  sub -section 
shall  not  exceed  the  difference  between  the  rate  of  such  duty  proposed  in  the  declared 
provision and the rate of such duty in force when the Bill was introduced. 

(2) Where  a  declared provision ceases to have the force of law under clause (b) or 
clause  (c)  of  sub-section  (2)  of  section  4,  refunds  shall  be  made  of  all  duties  collected  which 
would not have been collected if the declaration in respect of it had not been made. 

6. *[Repeal.] Rep. by the Repealing Act,* 1938 (1 of 1938), s. 2 *and Sch.*



[^1]. This Act has been extended to Berar by the Berar Laws Act, 1941 (4 of 1941), to Goa, Daman and Diu (with modifications) by 
Reg. 12 of 1962, s. 3 and the Schedule to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I; to the whole of the 
Union  territory  of  Lakshadweep  by  Reg.  8  of  1965,  s.  3  and  Sch.  and  to  Pondicherry  by  Notification  No.  G.S.R.  392,                       
dated 27-2-1963.